https://www.taxtmi.com/caselaws?id=434703 Reimbursements for salaries and related costs of seconded employees were held not taxable as fees for technical services or fees for included services under the Act and the India-USA DTAA. The seconded personnel worked under the Indian entity's direction and control, while the foreign entity only facilitated salary disbursement and recovered actual costs without any mark-up. Because the payments were cost-to-cost reimbursements for services already subject to tax deduction at source in India, they did not constitute consideration for technical, managerial or consultancy services, and the treaty's make-available requirement was not met. The addition on that basis was therefore unsustainable, and no withholding obligation arose on the reimbursement. en-us Mon, 20 Feb 2023 00:00:00 +0530 Wed, 01 Mar 2023 12:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=434703 Reimbursements for salaries and related costs of seconded employees were held not taxable as fees for technical services or fees for included services under the Act and the India-USA DTAA. The seconded personnel worked under the Indian entity's direction and control, while the foreign entity only facilitated salary disbursement and recovered actual costs without any mark-up. Because the payments were cost-to-cost reimbursements for services already subject to tax deduction at source in India, they did not constitute consideration for technical, managerial or consultancy services, and the treaty's make-available requirement was not met. The addition on that basis was therefore unsustainable, and no withholding obligation arose on the reimbursement. Case-Laws Income Tax Mon, 20 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=434703